The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-12-31
THE PACIFIC RAILWAYS.

Two Reports from the Commission-surges
tions to the Future of the Roads.
Washington special.
The following is brief synopsis of the report
OF the Pacific Railroad Commissioners. which
has been submitted to the President The ma
jority report is signed by Commissioners An
derson and Litter, and the minority report by
Commissioner Pattison:
The majority report contains copious refer
ences to the testimony taken. and severe strict
ures upon certain indicated perversions of their
trusts by Gould. Sage, and other former direct
of the Union Pacific and by Stanford,
Huntington, Croker and Hopkins. of the
Central Pacific 1t Gays that the Union Pacific
seems to have passed out of the control and
ownership of those responsible for the perver-
sion of trust and indicated frauds, which did
such great injury to the road and i'm paired the
government lien. and that the present manage
ment seems to be honest snd conscient tious, both
in respect TO the interests of the stockholders
and of the creditors. 1t speaks highly OF the
present condition of the property in point OF
road-bed, equipment and service.
The majority report IS accompanied by the
draft of bill, which provides follows That
the time for the payment of the debt due ths
government be extended to fifty years, but
that the roads shall execute formal mortgage
to tie government which now has only a statu-
tory lien covering not only the lines now subject
to the lieD but also the entire property of the
roads, new branches and ALL
That the debt be funded at per cent per
annum payable semi annually, directly into the
United States Treasury. but that the roads
shall have the privilege of taking up any part Of
the debt 10 advance.
That the President shall be empowered to ap.
point one trustee and the roads ancther--to be-
approved by the President-who shall have the
control of the sinking fund and other matters
pertaining to the payment of the debt to the
government.
That the roads shall provide for sinking
fund of one half of one per cent. annually upon
the total amount of the debt TO the government
for ten years. and that the trast shall then
provide for proper percentum of payment to
the sinking fund; so that the debts shall be paid
by it at maturity.
Tha. the boards of directors of the two roads
shall consent and agree that the law department,
of the United States shall be vested with power
to bring any suit, criminal or CIVIL in behalf Of
the road.
The report discusses at much length each Of
these provisions and lays great stress on the last
provision
The minority report of Commissioner Pattison
is radically different from that of his associates in
respect to his recommendation FOR the action OF
Congress His report begins with a most sweep
ing and earnest denuncation and arraignment
of former officers of the Union Pacific, and the
present managers of the Central Pacific, whose
malfeasances. diversion Of moneys belonging to
the stockholders of the road, and deliberate
and fraudulent inpairment Of tts govern
ment's liens pointed out with great
particularly and eloquence. He says that it is
not now question of a payment OF the debt to
the government, but of the punishment of these
criminals. He recommends q preliminary
step that the government shall institute suits
in the courts to have the charters of
both roads forfeited, and for the ap-
pointment of a receiver. who. OF course.
will then have power TO institute both civil and
criminal suits against those who have defrauded
at once both the roads and the government. He
suggests that the roads after thu forfeiture Of
the charters shall be offered for sale. and be-
lieves that they will be bought in by the stock
holders. He discusses at length what he
terms their present bankrupt condition,
the practical iDpossipity Of collecting the
governments debts, and the imperative necessity
of making an example of the who have
wrecked the roads and defrauded the people
large The minority report. therefore, is
accompanied by a proposed bill for Congress to
pass holding apparently that the proceedings
for the forfeiture of the charter must be had
in the courts and are not within the province OF
Congress.
What the President will do with the reports
can not be stated with any certainty. He may.
of course, concur with the recommendations Of
either report, in his message transmitting
them to Congress leave the whole matter TO the
Judgment of that body. 1t is known that be has
examined both with great attention and care in
the four weeks that they have been in his hands,
and also the volumnous testimony that accom-
panied them.